As DRAM prices begin to soar, internal conflicts between two of Samsung’s divisions have begun to materialize. The Korean giant’s semiconductor arm, also known as DS, has reportedly refused to supply its Mobile Experience (MX) sector with more than a year’s supply of DRAM chips for multiple Galaxy smartphones as it now aims to prioritize profitability over anything else. The latest series of events is expected to make the forthcoming Galaxy S26 launch even more volatile, with Samsung running the risk of increasing the price of its flagship lineup due to this setback.
The price of 12GB LPDDR5X RAM has climbed to $70 in November, making it more than double the figure compared to what it was at the beginning of the year
Industry sources informed Sedaily that instead of a contract that ensures Samsung’s MX division will receive a healthy supply of DRAM from DS for more than 12 months, a renegotiation of terms will likely come up every three months. This means that the company’s smartphone division will have to request DRAM supplies on a quarterly basis due to rising memory prices. The report mentions that the situation has become so dire that Samsung’s high-ranking executives had to intervene and negotiate accordingly.
Despite proceeding with talks, the MX division was only able to secure a supply of DRAM chips for the fourth quarter until the end of the year. To be fair, the price of 12GB LPDDR5X RAM has increased to $70, which is more than twice the amount it was available for at the beginning of the year, which was $33. The DS division has the right to refuse Samsung’s Mobile Experience because it needs to divert its focus to capitalizing on the memory shortage and boost sales accordingly.
According to a senior researcher, the Korean technology behemoth’s operating profit is said to reach $69 billion in 2026, with rising DRAM and NAND flash prices, plus improving 2nm GAA yields contributing to that bump. Samsung has also been reported to make its foundry business profitable by 2027, and in order to commit to that plan, it has to make some tough decisions, including rejecting DRAM requests to its sister division in favor of more lucrative contracts.
The biggest trade-off here is that the Galaxy S26 series, scheduled to launch in February 2026, risks a price hike, potentially hurting sales. However, the company’s flagship handsets are typically discounted just a couple of months after their inception in multiple regions, so it is not like consumers will be at a complete loss.
News Source: Sedaily
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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